The Hindu Business Line : GIC picks up 3 lakh shares in Surana Industries

THE Chennai-based Surana Industries Ltd's proposal to put up a Rs 473-crore integrated steel complex in Karnataka seems to have gone well with the financial sector. General Insurance Corporation of India Ltd has been picking up the company's shares from the market, and in the week ended January 13, the public sector re-insurer ended up with three lakh shares of the company.

According to sources in the banking sector, Surana Industries' proposal to borrow Rs 330 crore for the project has met with a keen interest from various banks. At a meeting held early this month, eleven banks gave commitments, which totalled to Rs 650 crore.

While company officials were not available for comment, a recent announcement made by the company to the BSE says that it had submitted a (loan) application to IDBI Bank, which in turn had called for a meeting of all participating banks. "The bankers have indicated their agreement in principle to finance the project," the notification said.

The 1.5 lakh-tonne Integrated Steel Complex project is coming up at Raichur. To part finance the Rs 142-crore equity portion of the issue, the company proposes to come out with a public issue. Punjab National Bank has been mandated to prepare the prospectus, says the notification to the stock exchange.

During the middle of the current year, the Rs 500-crore company installed windmills of a total capacity of 12 MW. It has now announced to the stock exchanges that the windfarm would produce 3.8 crore units of electricity, which would be used to run the company's plant at Gummidipoondi.

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